Analysis of Village Income and Expenditure in Aceh with Institutional Moderation

Abstrak

This study examines the financial dynamics of village governance in Aceh Province, particularly focusing on how different income sources influence village expenditure and the role of institutional factors in this relationship. The main aim of this research is to analyze the influence of village original income and transfer income on village spending with institutions as a moderating variable in Aceh Province. The data used in this research is secondary data in the form of quantitative data which includes the realization of village original income, the realization of village and institutional expenditure which is proxied as a regional competitiveness index, while transfer income consists of the realization of village funds, the realization of revenue sharing for district/city taxes and levies, the realization of village fund allocations, the realization of provincial financial assistance, and the realization of district/city financial assistance. The data in this research was obtained through the Central Statistics Agency and the National Research and Innovation Agency. The research results show that first, the flypaper effect has an impact on village spending with an increase in transfer income that is higher than the increase in original village income; second, institutions have a negative and significant effect on the relationship between transfer income and village expenditure. This means that institutions with good governance can be more effective in reducing income transfers for village spending. By reducing transfer income, institutions will try to optimize the village's original income based on the potential of the village area developed through BUMDes, so that it will have an impact on increasing village spending.